Vaping is growing in popularity all over the world, and it’s not slowing down anytime soon. Even with the several attempts to ban e-cigarettes, these attempts had only upsurged the population of vapers worldwide.
It won’t be a surprise if you’re thinking of starting a vaporizer business. If you want to learn more about starting a vaporizer business, you’ve come to the right place. Stick around to if a vaporizer business is a good startup idea – from the statistics behind the industry to the pros and important things to consider during the setup stage.
The Economics of the Vaporizer Business Industry
Before we dig deeerp into the real deal, let’s take a look at the current statistics in the vaping industry:
- By 2025, the whole vaping industry is estimated to be worth $61.4 billion, more or less. If you open a vaporizer business today, you’ll reap the benefits of these projected numbers better.
- In 2016, there were a recorded 35 million vapers worldwide.
- According to a survey of 5,769 adults in the US by Ipsos/Reuters, 10% of them admitted they’re vapers and they use e-cigarettes daily.
- A survey by Quartz discovered that there’s 2.7 vape shops for every bowling alley in the US, and four for every comic book store. That’s a sign that the vape industry is a good business to venture into.
- By 2021, the number of adult vapers will reach up to 55 million.
3 Reasons Why a Vaporizer Business is Your Next Bomb Business Idea
Let’s take a look at the pros of a vaporizer business:
You’re helping smokers find a better alternative for smoking.
Vapes were originally introduced as smoking cessation devices to the public. Because of the society slowly turning to health-conscious mode, smokers have jumped at the idea of e-cigarettes. Hence, the worldwide phenomenon.
This is backed by The Royal College of Physicians, who’ve studied the effectivity of e-cigarettes in harm reduction of tobacco. According to their report, vaping is 95% safer than smoking, and has a huge potential to reduce the health risks of smoking.
So by starting a vaporizer business, you can help smokers turn to a healthier version of smoking.
It’s more than a business.
Vaping is more than a business. There’s a lively community behind where you can expect plenty of opportunities and invitations to meet like-minded vapers and establish relationships. You get to enjoy vaping while earning at the same time.
There’s a higher chance of doubled ROI.
Due to the high demand, people are now on the lookout for the nearest and most affordable vaping supplies shop they can find. Even if the competition is high, you can still earn your business a good income stream.
Ready to Start? Take These 4 Pointers to Consideration First!
Opening a vaporizer business isn’t a guaranteed success, as most businesses are. Plenty of hobbyists and enthusiasts who’ve attempted to open their vaporizer business have met an untimely end, due to negligence of important matters of running a business.
So before launching your vaporizer shop, here are 4 important things to consider:
Be careful and considerate of the ever-changing laws about vaping
Unfortunately, the law as a whole is still undecided about vaping. Although there are fewer restrictions with vaping than there are with traditional smoking, there are still local laws and private establishments’ guidelines to consider.
Here’s what’s clear so far. The Food and Drug Administration (FDA) has declared vaporizers as tobacco products too. This means the same restrictions with tobacco cigarettes also apply to vaporizers, like the prohibition of selling them to minors, and banning vaping in public places.
If you’re planning to make or modify your vaporizers, you’ll also need to comply with FDA’s regulations on tobacco retailers and manufacturers.
To check your local municipality or state’s law on vaping, you can visit the list here. Check with your local government if there are additional requirements and permits you need to acquire to legally set up shop.
You also need to consider your state or local vape taxes. There’s no federal excise tax running on vape products, but other states and local municipalities may do so.
Lastly, you’ll need to register your shop as a business entity, whether you’re planning to set up a brick and mortar or online shop. Check this post out if you want to learn more about the requirements of setting up a business.
The competition is tough
The growing population and demand for vape supplies are inspiring – so inspiring that plenty of vape businesses have popped up all over the world. Your competitions here are not vape shops only. Gas stations, convenience stores, even malls are selling vape supplies.
The marketplace is getting saturated that a small business may find it challenging to survive. But this won’t be a problem if you practice and consider the following:
- Setting up shop or targeting a place with a high number of vapers
- Prioritizing quality customer service
- Selling cheap vaporizer that produces quality vapor
- Being active in your local vape community
Prepare a huge capital to cover your first six months of operations
Running a vape shop is not for the faint of budget. According to Jon Merton, founder of Vapor Craze, you’ll need around $50,000 to start a vape shop. You’ll also need a minimum of $7,420 to $10,020 to keep your business running within six months.
Consider where you’ll set up shop.
If you’re planning to establish a physical shop, you’ll need to plan your location smartly. Is there good traffic within the vicinity? Will your shop be easy to reach or visit?
Then you’ll need to consider the bigger expenses with setting up a brick and mortar. Aside from the capital for purchasing your stocks, you’ll also need to consider rent, local permits, electrical fees, and more.
If you’re planning to start an online shop, the important things you’ll need to consider are your website, your target market, and how you’ll market your business. The target market in particular helps you narrow down the local vaping policies you’ll need to research, as well as the marketing efforts required for your business.
In terms of costs, you’ll need to consider setup and maintenance of your e-commerce website, your marketing strategies (like FB ads for example) aside from the mandatory expenses like supplies.